"Recognition is sweet but it is sweeter when it comes from your peers and close friends." So said Dr K Anji Reddy, chairman of the Hyderabad-based Dr. Reddy''s Laboratories, at a function organised by the Indian Pharmaceutical Alliance (IPA) to felicitate him on being conferred the Padma Shree by the government. {The Padma Shree is a civilian award conferred by the government of India to persons who have made a significant contribution to their area of specialisation in the country.}

He was reacting to warm tributes paid to him by captains of the pharmaceutical industry, in their opening remarks/speeches.

"Overwhelmed" by all the kind words said about him, not sure that he deserved them, Dr Reddy said that the year 2001, so far, had proved to be one, in which events overtook him.

The sequence of "events overtaking him" began on 26 January when he got a call from the government, informing him that he had been awarded the Padma Shree for work done in pharmaceutical research.

This was followed by the company''s ADS issue in April, making Dr Reddy’s Laboratories the first Asian pharmaceutical company outside Japan to list on the New York stock exchange. "The inspiration for the ADS issue came to me during one of my trips to Canada. I casually mentioned to an investor there that if I had the money, I would have filed patents applications for two to three drugs", reminisced Dr Reddy. The most satisfying moment, he said, was the response the ADS offering received despite stock markets world over falling like nine pins.

The third important event was on 31 May when global pharma major, Novartis, called to inform him that they had decided to buy the exclusive rights for development and commercialisation of the diabetes molecule, DRF 4158, discovered by his company. The Swiss major was ready to pay a price of $55 million or Rs 258 crore, payment for which will be staggered over a period of time. The deal will also fetch milestone payments and if commercialised successfully, royalty payments later.

Dr. Reddy stated that he was pleasantly surprised to find out that the company''s share at the New York stock exchange had crossed the $17 mark, after the Novartis news became public. The drug, expected to be launched in 2007, falls in a class called insulin sensitisers. "This was one drug, which the Japanese had failed to come out with", said Dr Reddy.

He, however, quickly pointed out that he was not interested in valuations of shares personally, but if somebody liked his stock so much then it was a good thing for the company. Striking a note of caution Dr Reddy said, "However I am also now concerned about high expectations of investors from me, which I have to fulfil"

This molecule becomes the third diabetes molecule licensed by DRL to a multinational. The first two were licensed to Danish drug firm, Novo Nordisk and the drugs are currently in the second phase of clinical trials. DRF 4158 can be potentially used for type 2 diabetes ie through dyslipidemia, hypertension and obesity. DRF 4158 is currently in pre-clinical evaluation or animal studies and human trials are expected to begin before the end of fiscal 2001.

Emphasising on the importance of taking risks Dr Reddy said, "Without risks the profits would be ordinary." Dr Reddy realised early enough that the quality of research by most multinational pharmaceutical companies was not good enough, which inspired him to dwell into research. He said he worked hard to get desired results and pointed out that often he would spend his weekend with his scientists, discussing and exchanging views. "I would not go home during the weekend. This form of functioning gave rise to many ideas, which formed the basis of today’s discoveries", Dr Reddy remembered.

He said in the past people had dwelled into medical research with only $100 in their pocket. "At least my company had profits of Rs 30 crore, when I too decided to get into research 10 years back. I decided to invest Rs 10 crore in research, which would form the basis of my company’s growth in future", he said.

Dr Reddy made an important point when he said there were many Indian companies capable of conducting similar research and coming out of even better results. He said margins in generic products were low and selling new drugs through research was the only way out for Indian companies. Dr Reddy said granting of Padma Shree was not enough after he had discovered, filled and sold patents for three drugs to multinationals and added he was looking forward to the Padama Bhushan award next year.

Earlier Mr DG Shah, secretary general IPA, described Dr Anji Reddy as an extremely "humble and simple" person, who stood devoted to the cause of his work.

Dr RA Mashelkar, director general Central Scientific Institute for Research, described Dr Reddy’s success to the fact that he was an Indian and Indian brains had proved to be superior from time immemorial. He said most Indian children had been continuously winning the Mathematics olympiads, proving the superiority of Indian minds. He said Dr Reddy was instrumental in inculcating the culture of cost cutting and research in the Indian pharmaceutical industry.

The Indian Pharmaceutical Alliance or IPA represents research based national pharmaceutical companies comprising Alembic, Cadila Healthcare, Cipla, Dr Reddy’s Laboratories, Lupin Laboratories, Nicholas Piramal India, Ranbaxy Laboratories, Sun Pharmaceutical Industries, Torrent Pharmaceuticals, Unichem Laboratories and Wockhardt.

The main aims of the IPA are:

• Partnering the government in evolution of a patent regime that will on one hand meet TRIP’s obligatons and on the other serve national interests.

• Engaging the government in constructive dialogues to move to price management from price control regime for benefit of consumers and

• Working with the government in progressively upgrading regulatory provisions, procedures and standards for harmonisation with those of the developed markets.

IPA is seeking to affiliate itself with the International Generic Pharmaceutical Association or IGPA, located at Brussels, which represents the generic pharmaceutical industry of Europe, Canada and US. This association, comprising of more than 500 international companies, collectively represents a significant cross-section of the global pharmaceutical industry. IGPA’s main objective is to promote international pharmaceutical harmonisation and regulatory decisions in a way that will benefit and strengthen the industry.